"Although the No result wasn't too much of a surprise, perhaps the extent of the majority was. The market will be watching Monte dei Paschi closely. Their $5b private recap may be in jeopardy. Given they are the third largest lender in Italy, this could have major repercussions. It could go several different ways if the recap doesn't get through, few of which would be viewed positively for Euro banks. As with all the recent political shocks we've had recently, this will elevate volatility.
"Interestingly, the ECB is limited to own a 33% of a country's debt. It currently owns roughly 26% of Italy's and may need to look at that this week.
"The result is also likely to heighten volatility for the Eurozone's weaker members, especially Greece and to a lesser extent, Spain and Portugal. With another election now added to the cocktail of political risks in Europe as Italy has to go to the polls again, this won't help stability. Like Brexit, the Currency seems to be bearing the brunt of the market's concerns with the Euro down sharply.
"That said, markets seem relatively calm at the open with a surprising number of people not at their desks early, unlike after The Brexit and Trump results. Perhaps we are all becoming more immune to these 'shocks’."